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1. Company Snapshot

1.a. Company Description

Eiffage SA engages in the construction, infrastructure, energy systems, and concessions businesses in France and internationally.The company's Construction segment offers urban development, building design and construction, property development, and maintenance and facilities management services for public and private-sector customers.Its Infrastructure segment is involved in the civil engineering, road and rail design and construction, drainage, earthworks, and metallic construction.


The company's Energy Systems segment designs, constructs, integrates, operates, and maintains of energy and telecommunication systems and installations.Its Concessions segment finances, designs, builds, maintains, and services motorways and other large infrastructure projects, public facilities, and buildings and urban developments, as well as operates toll structures under concessions and public-private partnerships.The company was incorporated in 1920 and is headquartered in Vélizy-Villacoublay, France.

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1.b. Last Insights on FGR

Eiffage SA's recent performance was driven by robust revenue growth, a record order book, and a strong financial foundation. The company's ability to secure large-scale projects, such as the delivery of three production halls for Airbus Atlantic, has contributed to its growth. Additionally, Eiffage's involvement in high-profile infrastructure projects, such as the construction of Madrid's new F1 urban circuit, has generated positive sentiment. Furthermore, the company's commitment to sustainability, as seen in its energy-efficient measures for the Airbus project, has likely enhanced its reputation and appeal to investors.

1.c. Company Highlights

2. Eiffage's H1 2025 Results: Steady Growth and Strategic Expansion

Eiffage reported a 7.5% revenue growth in the first half of 2025, driven by a combination of organic growth and external acquisitions, particularly in the energy systems business. The group's profit from ordinary activities increased slightly by EUR 9 million, despite higher employee shareholding plan expenses. Earnings per share (EPS) came in at EUR 3.24, below analyst estimates of EUR 3.71. The revenue growth was largely driven by the energy systems segment, which now represents 38% of the group's total activity.

Publication Date: Sep -01

📋 Highlights
  • Revenue Growth:: Eiffage achieved an 8.4% revenue increase in H1 2025, driven by 4.3% organic growth and 4.1% external growth, with Europe outside France showing a 17.4% surge.
  • Energy Systems Expansion:: Energy Systems now accounts for 38% of total activity, targeting EUR 8 billion in revenue with a 6% operating margin, bolstered by six acquisitions including HSM Offshore.
  • Order Book Strength:: The order book grew 4% to EUR 29.5 billion, with strategic wins in infrastructure (e.g., Madrid F1 circuit, Cabra powerhouses) and energy projects.
  • Financial Resilience:: Net debt reduced EUR 700 million to EUR 9.9 billion despite EUR 700 million in CapEx, while profit from ordinary activities rose EUR 9 million despite higher share expenses.
  • German Market Focus:: Germany is a key growth driver, with EUR 400 million earmarked for concession projects and optimism about long-term infrastructure investments under the German "Plan."

Segmental Performance

The construction segment saw a stable revenue performance, with a decline in the first quarter offset by a 4.4% increase in the second quarter. The property development segment, however, declined by over 24%, resulting in a 3.4% profit margin. The concessions segment saw a 2.2% increase in traffic, with a slight EBITDA margin decrease due to IFRS2 shareholding expenses. Getlink's contribution to net profit was EUR 31 million.

Strategic Expansion and Acquisitions

Eiffage continued its strategic expansion in energy services, acquiring six companies, including HSM Offshore Energy, a major player in wind farm construction. These acquisitions, along with organic growth, have shifted the group's business mix. The company is prioritizing efficient contract selection and execution to drive profitability in the energy sector, where it expects a 6% operating margin for the year.

Outlook and Valuation

Eiffage is confident in achieving its target of 6% operating margin and EUR 8 billion in revenue for the year. The company's order book grew to EUR 29.5 billion, demonstrating strong medium to long-term visibility. With a current P/E ratio of 9.57 and a dividend yield of 4.43%, the stock appears reasonably valued. The EV/EBITDA ratio of 5.19 suggests that the company's enterprise value is relatively in line with its earnings. As Eiffage continues to expand its presence in key markets like Germany and Spain, its growth prospects appear promising.

Growth Prospects and Risks

Eiffage is optimistic about the future, particularly regarding the German "Plan," which is expected to drive significant investment in infrastructure projects over the long term. However, the company anticipates a challenging market environment for the remainder of the year, particularly in the French real estate market, which is currently weak. The company's exposure to the U.S. wind farm market is limited, as it has no direct exposure to U.S. wind farm projects.

3. NewsRoom

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3 European Dividend Stocks Yielding Up To 5.5%

Nov -17

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Top European Dividend Stocks To Consider In October 2025

Oct -13

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Inaugural Ivalua TechX Event Unites Procurement and Technology Leaders

Oct -03

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European Dividend Stocks To Watch In September 2025

Sep -10

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Does a One-Off French Tax Hit Change the Bull Case for Eiffage (ENXTPA:FGR)?

Sep -08

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Graphene enhanced perovskite solar cells improve efficiency and reduce production costs

Sep -07

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Europe Construction Industry Report 2025-2034 Featuring Hochtief, Eiffage, STRABAG International, Balfour Beatty, Ferrovial, and Acciona

Sep -02

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Eiffage revenue rises in H1, but net income hit by French tax levy

Aug -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.70%)

6. Segments

Infrastructure

Expected Growth: 2.5%

Eiffage SA's infrastructure segment growth of 2.5% is driven by increasing government investments in transportation and energy projects, urbanization, and a growing need for sustainable infrastructure. Additionally, the company's focus on innovation, digitalization, and strategic partnerships contribute to its growth momentum.

Energy Systems

Expected Growth: 2.8%

Eiffage SA's Energy Systems segment growth of 2.8% is driven by increasing demand for renewable energy, electrification of transportation, and energy efficiency measures. Government incentives and regulations supporting the energy transition also contribute to growth. Additionally, Eiffage's expertise in grid management and energy storage solutions positions the company to capitalize on the rising need for decentralized energy systems.

Construction

Expected Growth: 2.2%

Eiffage SA's 2.2% growth in Construction is driven by increasing infrastructure investments in France, urbanization, and a strong order book. Additionally, the company's focus on sustainable construction, renovation, and energy-efficient solutions is attracting clients. Furthermore, Eiffage's diversified portfolio, including transportation, energy, and civil engineering, is contributing to its growth momentum.

Concessions

Expected Growth: 3.5%

Eiffage SA's concessions segment growth of 3.5% is driven by increasing infrastructure investments in France, expansion into new markets, and a strong order book. Additionally, the company's focus on sustainable and digital infrastructure solutions is attracting new clients and projects, contributing to the segment's growth.

Holding

Expected Growth: 1.8%

Eiffage SA's 1.8% growth is driven by increasing infrastructure investments in France, a strong order book in the construction segment, and a growing contribution from the energy and rail businesses. Additionally, the company's focus on innovation, digitalization, and sustainability initiatives is expected to support long-term growth.

7. Detailed Products

Construction

Eiffage SA provides construction services for buildings, infrastructure, and energy projects, including design, engineering, and project management.

Civil Engineering

Eiffage SA offers civil engineering services for large-scale infrastructure projects, including bridges, tunnels, and railways.

Energy

Eiffage SA provides energy solutions for the production, transmission, and distribution of energy, including renewable energy sources.

Metal

Eiffage SA manufactures and supplies metal products, including steel, aluminum, and other metals, for various industries.

Roads

Eiffage SA designs, builds, and maintains road infrastructure, including highways, motorways, and urban roads.

Real Estate

Eiffage SA develops and manages real estate properties, including residential, commercial, and industrial projects.

Concessions

Eiffage SA operates and maintains infrastructure concessions, including toll roads, bridges, and tunnels.

8. Eiffage SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Eiffage SA operates in the construction industry, where substitutes are limited. However, there is a growing trend towards sustainable and eco-friendly construction materials, which could pose a threat to the company's traditional business model.

Bargaining Power Of Customers

Eiffage SA's customers are primarily government agencies and large corporations, which have limited bargaining power due to the company's strong reputation and expertise in the industry.

Bargaining Power Of Suppliers

Eiffage SA relies on a network of suppliers for materials and equipment. While the company has some bargaining power due to its large scale, suppliers can still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The construction industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to Eiffage SA's business.

Intensity Of Rivalry

The construction industry is highly competitive, with several large players vying for market share. Eiffage SA faces intense rivalry from companies such as Vinci, Bouygues, and others, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.19%
Debt Cost 4.24%
Equity Weight 29.81%
Equity Cost 10.02%
WACC 5.96%
Leverage 235.48%

11. Quality Control: Eiffage SA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Eiffage

A-Score: 7.1/10

Value: 8.5

Growth: 6.2

Quality: 4.8

Yield: 7.5

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Bouygues

A-Score: 6.9/10

Value: 8.2

Growth: 5.3

Quality: 3.7

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ACS

A-Score: 6.9/10

Value: 5.8

Growth: 6.6

Quality: 4.4

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Balfour Beatty

A-Score: 6.5/10

Value: 5.8

Growth: 6.1

Quality: 4.5

Yield: 4.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Budimex

A-Score: 4.5/10

Value: 2.4

Growth: 4.8

Quality: 5.4

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

119.65$

Current Price

119.65$

Potential

-0.00%

Expected Cash-Flows